Measuring the local economic integration of farm households: Findings from two case study areas

Despite the emphasis given in EU agricultural policy to the local economic benefits of a
maintaining a strong agricultural sector, relatively little research has focussed on the
contribution farm households make to their localities. The lack of understanding is particularly
acute given ongoing changes in the agri-food chain and changes in farm structures. The paper
presents findings from an analysis of the direct transactions associated with a sample of farm
households drawn from two European case study areas – Podlaskie, Poland and North East
Scotland, UK. The results confirm that the concept of “local” in relation to farm household
transactions depends on the economic geography of the area under analysis. With the
exception of off-farm work, farm households within North East Scotland study have more
distant and spatially-concentrated transactions due to the consolidation of upstream and
downstream agri-businesses in the region. In contrast, transactions in Podlaskie take place far
closer to the holding and are more spatially dispersed. Farm size does not systematically
influence input purchasing and output sales patterns in either area but farmer attachment and
supply-side factors are shown to be significant influences on behaviour.